Jul 06, 2021

Petrol shortage in the offing? (Exclusive) Featured

A shortage of 92 Octane petrol is likely to take place soon, according to internal sources of the Ceylon Petroleum Corporation (CPC).

The reason for this situation is the cancellation of the short term Tender issued by the CPC to import 170,000 barrels of 92 Octane petrol in anticipation of a shortage.

Long-term tenders are usually used to import fuel.

According to such a long-term Tender, the next consignment of petrol to be delivered to Sri Lanka is scheduled for July 22-23.

The short term Tender has been called as there is a risk of CPC's 92 Octane petrol stocks being depleted before this stock arrives.

'Sri Lanka Mirror' learns that the Tender has been cancelled stating that the bids were too high.

Normally when importing fuel, 300,000 barrels of fuel are imported at one go, shipping charges are evenly distributed over the 300,000 barrels.

However, as the short term Tender being limited to just 170,000 barrels, it is reported that this could lead to higher fuel prices as the shipping charges are distributed among a lesser number of barrels.

In the case of long-term Tenders, it takes two weeks to submit a bid and one month to import the oil stocks.

However, the short-term Tender has been given 05 days to bid and 15 days to import 92 Octane Petrol.